GREENLIGHT CAPITAL RE, LTD. - FORM 8-K - EX-99.1 - PRESS RELEASE - April 30, 2012

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GREENLIGHT RE ANNOUNCES
FIRST QUARTER 2012 FINANCIAL RESULTS

GRAND CAYMAN, Cayman Islands (April 30, 2012) - Greenlight Capital Re, Ltd. (NASDAQ: GLRE) today announced financial results for the first quarter of 2012. Greenlight Re reported net income of $65.1 million for the first quarter of 2012 compared to a net loss of $43.0 million for the same period in 2011. The fully diluted net income per share was $1.75 for the first quarter of 2012, compared to a net loss per share of $1.19 for the same period in 2011.

Fully diluted adjusted book value per share was $23.29 as of March 31, 2012, a 15.1% increase from $20.23 per share as of March 31, 2011.

“There are signs that the reinsurance market is slowly improving. However, in an environment which remains quite competitive, we continue to be diligent and cautious as we identify underwriting opportunities that we believe offer attractive risk adjusted returns,” stated Bart Hedges, Chief Executive Officer of Greenlight Re. “We are pleased that our investment portfolio performed well during the quarter, as we continue to grow book value per share over the long term while preserving capital.”

Other financial and operating highlights for Greenlight Re for the first quarter ended March 31, 2012 include:
•
Gross written premiums were $152.2 million compared to $100.7 million in the first quarter of 2011, while net earned premiums were $101.6 million, a slight decrease from $105.2 million reported in the first quarter of last year.
•
The combined ratio was 102.4% compared to 107.4% in the first quarter of 2011.
•
Net income on the investment portfolio was $71.6 million, or 6.5%, compared to a net investment loss of $36.2 million, or 3.4%, in the first quarter of 2011.

“We continue to take a consistent, disciplined approach in executing our underwriting and investment strategies,” said David Einhorn, Chairman of the Board of Directors. “As the market turns, Greenlight Re is well-positioned to capture new opportunities given our solid balance sheet, reputation, and customer-focused orientation.”



Conference Call Details

Greenlight Re will hold a live conference call to discuss its financial results for the first quarter of 2012 on Tuesday May 1, 2012 at 9:00 a.m. Eastern time.  The conference call title is Greenlight Capital Re, Ltd. First Quarter 2012 Earnings Call.



To participate, please dial in to the conference call at:
    
U.S. toll free             1-877-317-6789
International            1-412-317-6789

The conference call can also be accessed via webcast at:

http://services.choruscall.com/links/glre120501.html

A telephone replay of the call will be available from 11:00 a.m. Eastern time on May 1, 2012 until 9:00 a.m. Eastern time on May 16, 2012.  The replay of the call may be accessed by dialing 1-877-344-7529 (U.S. toll free) or 1-412-317-0088 (international), access code 10011989. An audio file of the call will also be available on the Company's website, www.greenlightre.ky .

###

Regulation G
Fully diluted adjusted book value per share is a non-GAAP measure and represents basic adjusted book value per share combined with the impact from dilution of share based compensation including in-the-money stock options as of any period end. Book value is adjusted by subtracting the amount of the non-controlling interest in joint venture from total shareholders' equity to calculate adjusted book value. We believe that long term growth in fully diluted adjusted book value per share is the most relevant measure of our financial performance. In addition, fully diluted adjusted book value per share may be of benefit to our investors, shareholders and other interested parties to form a basis of comparison with other companies within the reinsurance industry.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market fluctuations, trends in insured and paid losses, catastrophes, regulatory and legal uncertainties and other factors described in our annual report on Form 10-K filed with the Securities Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Greenlight Capital Re, Ltd.
Greenlight Re (www.greenlightre.ky) is a specialist property and casualty reinsurance company based in the Cayman Islands and Ireland.  The Company provides a variety of custom-tailored reinsurance solutions to the insurance, risk retention group, captive and financial marketplaces.  Established in 2004, Greenlight Re selectively offers customized reinsurance solutions in markets where capacity and alternatives are limited.  With a focus on deriving superior returns from both sides of the balance sheet, Greenlight Re's assets are managed according to a value-oriented equity-focused strategy that complements the Company's business goal of long-term growth in book value per share.

Contact:
Alex Stanton
Stanton Public Relations & Marketing
(212) 780-0701
astanton@stantonprm.com




GREENLIGHT CAPITAL RE, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
March 31, 2012 and December 31, 2011
(expressed in thousands of U.S. dollars, except per share and share amounts)
 
March 31, 2012
 
December 31, 2011
 
(unaudited)
 
(audited)
Assets
 
 
 
Investments
 
 
 
Debt instruments, trading, at fair value
$
6,755

 
$
10,639

Equity securities, trading, at fair value
1,033,572

 
890,822

Other investments, at fair value
139,828

 
128,685

Total investments
1,180,155

 
1,030,146

Cash and cash equivalents
5,363

 
42,284

Restricted cash and cash equivalents
1,021,034

 
957,462

Financial contracts receivable, at fair value
32,239

 
23,673

Reinsurance balances receivable
204,130

 
141,278

Loss and loss adjustment expenses recoverable
36,676

 
29,758

Deferred acquisition costs, net
75,722

 
68,725

Unearned premiums ceded
27,004

 
27,233

Notes receivable
18,305

 
17,437

Other assets
2,783

 
5,492

Total assets
$
2,603,411

 
$
2,343,488

Liabilities and shareholders’ equity
 
 
 
Liabilities
 
 
 
Securities sold, not yet purchased, at fair value
$
745,520

 
$
683,816

Financial contracts payable, at fair value
15,962

 
6,324

Due to prime brokers
315,291

 
260,359

Loss and loss adjustment expense reserves
277,913

 
241,279

Unearned premium reserves
265,583

 
225,735

Reinsurance balances payable
39,861

 
32,192

Funds withheld
33,566

 
38,031

Other liabilities
11,432

 
10,054

Performance compensation payable to related party
16,979


—

Total liabilities
1,722,107

 
1,497,790

Shareholders’ equity
 
 
 
Preferred share capital (par value $0.10; authorized, 50,000,000; none issued)
—

 
—

Ordinary share capital (Class A: par value $0.10; authorized, 100,000,000; issued and outstanding, 30,378,689 (2011: 30,283,200): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,949 (2011: 6,254,949))
3,663

 
3,654

Additional paid-in capital
489,310

 
488,478

Retained earnings
376,104

 
310,971

Shareholders’ equity attributable to shareholders
869,077

 
803,103

Non-controlling interest in joint venture
12,227

 
42,595

Total equity
881,304

 
845,698

Total liabilities and equity
$
2,603,411

 
$
2,343,488

 



GREENLIGHT CAPITAL RE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
 
For the three months ended March 31, 2012 and 2011
(expressed in thousands of U.S. dollars, except per share and share amounts)
 
 
Three months ended March 31,
 
2012
 
2011
Revenues
 
 
 
Gross premiums written
$
152,220

 
$
100,739

Gross premiums ceded
(10,994
)
 
(3,476
)
Net premiums written
141,226

 
97,263

Change in net unearned premium reserves
(39,637
)
 
7,894

Net premiums earned
101,589

 
105,157

Net investment income (loss)
71,606

 
(36,176
)
Other expense, net
(212
)
 
(261
)
Total revenues
172,983

 
68,720

Expenses
 
 
 
Loss and loss adjustment expenses incurred, net
63,307

 
65,725

Acquisition costs, net
36,025

 
42,121

General and administrative expenses
4,624

 
4,999

Total expenses
103,956

 
112,845

Income (loss) from continuing operations before income tax expense
69,027

 
(44,125
)
Income tax expense
(262
)
 
(1
)
Net income (loss) including non-controlling interest
68,765

 
(44,126
)
(Income) loss attributable to non-controlling interest in joint venture
(3,632
)
 
1,136

Net income (loss)
$
65,133

 
$
(42,990
)
Earnings (loss) per share
 
 
 
Basic
$
1.78

 
$
(1.19
)
Diluted
$
1.75

 
$
(1.19
)
Weighted average number of ordinary shares used in the determination of earnings (loss) per share
 
 
 
Basic
36,550,953

 
36,118,963

Diluted
37,279,371

 
36,118,963



The following table provides the ratios for the three months ended March 31, 2012 and 2011:
 
 
Three months ended
March 31, 2012

Three months ended
March 31, 2011
 
Frequency

Severity

Total

Frequency

Severity

Total
 

Loss ratio
65.2
%

2.1
%

62.3
%

57.1
%

139.8
%

62.5
%
Acquisition cost ratio
36.3
%

17.0
%

35.5
%

42.0
%

11.7
%

40.1
%
Composite ratio
101.5
%

19.1
%

97.8
%

99.1
%

151.5
%

102.6
%
Internal expense ratio




4.6
%





4.8
%
Combined ratio




102.4
%





107.4
%

GREENLIGHT CAPITAL RE, LTD. Reports